AXIS Reit

Injecting asset; more in the pipelineAcquisition-led growth. Axis REIT (AXRB)’s 1Q10 realised net income of RM12m (+12% YoY, +1% QoQ) was within expectations. Separately, it proposed to acquire a RM30.5m logistic warehouse in Johor, with a net property yield of 9.2%. The acquisition is yield accretive. We expect a proposed placement of new AXRB units to support share price performance. Maintain Buy with a DCF-based TP of RM2.28 (7.1% WACC) for its high dividend yield of >7.8% gross p.a..